The Securities and Exchange Board of India (SEBI) in its affidavit filed before the Supreme Court said that it would conduct a detailed examination into Adani stocks following allegations of manipulation by US short-seller Hindenburg Research.

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The markets regulator added that "dealing with such unusual events at a specific group", hinting at the Adani Group-Hindenburg Research issue, was a matter of surveillance and enforcement action.

It told the court that it will undertake a detailed examination as per existing regulatory frameworks on investor protection and short-selling.

The current framework on investor protection is both robust and has been validated not just in recent weeks but also during the pandemic, SEBI told the court. It also added that a robust framework was also in place for short-selling, which gets automatically triggered and disclosed to the public.

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Amid market fluctuation, additional surveillance measures such as guardrails have been repeatedly applied to the shares due to the volatility in their pricing, SEBI claimed.

SEBI also said it has powers to regulate markets and frame regulations. SEBI regularly updates these regulations as and when required based on the dynamic nature of the markets, it told the court.

Considering all inputs while formulating its rules, the market watchdog consults experts from all relevant fields and seeks comments from the public as well.

On the Adani issue, SEBI ensured that if there are any learnings from the case that warrant policy review, it would follow its normal procedure of consolidating expert and public views.

Amid allegations of price manipulation and accounting fraud by US short-seller Hindenburg Research, the Adani Group on Monday released a statement claiming that the balance sheets of its companies were "very healthy".

First Published:Feb 13, 2023 7:33 PM IST